Lithia Motors Reports 71% Increase in Adjusted Full Year Continuing Operations EPS; Increases 2011 Outlook
MEDFORD, OR -- (Marketwire) -- 02/23/11 -- Lithia Motors, Inc. (NYSE: LAD) today reported 2010 adjusted fourth quarter net income from continuing operations of $5.6 million, or $0.21 per diluted share. This compares to a 2009 adjusted fourth quarter net loss from continuing operations of $(0.7) million, or $(0.03) per diluted share. Fourth quarter 2010 revenue from continuing operations increased $130.7 million, or 30.8% to $555.6 million, compared to $424.9 million in the year-ago period.
Fourth Quarter Operating Highlights:
- New vehicle same store sales increased 34.4%
- Used vehicle retail same store sales increased 21.1%
- Service, body and parts same store sales increased 5.4%
As shown in the attached reconciliation table, the 2010 and 2009 fourth quarter adjusted results from continuing operations excluded non-core charges of $0.05 and $0.04 per share, respectively, on asset impairments, disposal gains and reserve adjustments. Unadjusted, net income (loss) from continuing operations for the fourth quarter of 2010 and 2009 was $4.4 million or $0.16 per diluted share and $(1.8) million or $(0.07) per diluted share, respectively.
Sid DeBoer, Lithia's Chairman and CEO, commented, "The economic recovery continued to accelerate through the fourth quarter. All states we operate in posted double digit increases in same store sales."
For the full year 2010, revenue from continuing operations increased 19.7% to $2.1 billion as compared to $1.8 billion in 2009. Same store new vehicle sales increased 19.5%, used vehicle retail same store sales increased 19.3% and service, body and parts same store sales increased 0.4%. Full year 2010 adjusted net income from continuing operations was $0.94 per share as compared to $0.55 per share in 2009. Unadjusted, full year net income from continuing operations was $0.53 per diluted share, compared to net income from continuing operations of $0.31 per diluted share for 2009.
Mr. DeBoer continued, "For the full year, our adjusted earnings per share from continuing operations increased 71%. This improvement is a testament to the earnings potential Lithia can realize as we increase our market share in an improving economy."
Balance Sheet Update
Lithia ended the period with $98.2 million in immediately available funds, including $9.3 million in cash, $23.3 million in availability on its revolving credit facility, and $65.6 million in unfinanced new vehicle inventory.
Dividend Payment
Lithia announced that the Board of Directors has approved a dividend of $0.05 per share for the fourth quarter 2010. Lithia will pay the dividend March 25, 2011 to shareholders of record on March 11, 2011.
Increased Outlook for 2011
Lithia projects its 2011 first quarter earnings guidance within a range of $0.19 to $0.21 per diluted share. Full-year 2011 earnings guidance is projected within a range of $1.20 to $1.28 per diluted share. Both projections are based on the following annual assumptions:
- Total revenues in range of $2.3 to $2.45 billion
- New vehicle same store sales increasing 16%
- New vehicle gross margin ranging from 7.9% to 8.1%
- Used vehicle same store sales increasing 10%
- Used vehicle gross margin ranging from 13.7% to 14.0%
- Service body and parts same store sales increasing 2%
- Service body and parts gross margin ranging from 48.3% to 48.6%
- Finance and insurance gross profit of $970 per unit
- Tax rate of 40%
- Estimated average diluted shares outstanding of 26.9 million
- Capital expenditures of approximately $26 million
- Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
Fourth Quarter Earnings Conference Call and Updated Presentation
The fourth quarter conference call may be accessed at 2:00 p.m. PT today by telephone at 877-407-8029. An updated presentation highlighting the fourth quarter results has been added to Investor Relations on www.lithia.com.
To listen live on our website or for replay, visit Investor Relations on www.lithia.com and click on the conference call icon. A playback of the conference call will be available after 5:00 p.m. PT on February 23, 2011 through March 2, 2011 by calling 877-660-6853 (Conference ID: 366539 Account: 305).
About Lithia
Lithia Motors, Inc. is the ninth largest automotive retailer in the United States. As of today, Lithia sells 25 brands of new and all brands of used vehicles at 83 stores, which are located in 12 states. Lithia also sells used vehicles; arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations.
For additional information on Lithia Motors, contact John North, VP Finance / Controller at (541) 618-5748 or visit www.lithia.com and click on "Investor Relations."
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Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. Forward-looking statements in this press release include our guidance regarding first quarter and full year 2011 results, the sustainability of the economic recovery and the earnings power produced by increasing revenues. Forward looking statements include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks" or "will." These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors, including without limitation, future economic conditions and others set forth from time to time in the company's filings with the SEC. We urge you to carefully consider this information. We undertake no duty to update our forward-looking statements, including our earnings outlook.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and diluted earnings per share from continuing operations, adjusted SG&A as a percentage of revenues and gross profit, adjusted operating margin, adjusted operating profit as a percentage of gross profit and adjusted pre-tax margin adjusted to exclude certain items disclosed in the attached financial tables. Cash flows from operations were adjusted to include the change in non-trade floorplan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable GAAP measures, which are set forth in the attachments to this release. The Company believes that each of the foregoing non-GAAP financial measures improves the transparency of the Company's disclosure, provides a meaningful presentation of the Company's results from its core business operations excluding adjustments for items not related to the Company's ongoing core business operations or other non-cash adjustments, and improves the period-to-period comparability of the Company's results from its core business operations. These presentations are not intended to provide net income, cash flows from operations, operating income or selling, general and administrative costs in accordance with GAAP and should not be considered an alternative to GAAP measures.
Lithia Motors, Inc. Consolidated Statement of Operations (Unaudited) (In thousands except per share data) Three Months Ended December 31, % -------------------- Increase Increase 2010 2009 (Decrease) (Decrease) --------- --------- ---------- ---------- Revenues: New vehicle retail $ 290,073 $ 210,494 $ 79,579 37.8% Used vehicle retail 139,652 112,051 27,601 24.6 Used vehicle wholesale 28,209 18,212 9,997 54.9 Finance and insurance 17,267 12,299 4,968 40.4 Service, body and parts 77,297 71,268 6,029 8.5 Fleet and other 3,093 524 2,569 NM --------- --------- ---------- ---------- Total revenues 555,591 424,848 130,743 30.8 Cost of sales: New vehicle retail 267,407 193,970 73,437 37.9 Used vehicle retail 120,755 96,622 24,133 25.0 Used vehicle wholesale 28,270 18,217 10,053 55.2 Service, body and parts 41,698 38,632 3,066 7.9 Fleet and other 2,623 205 2,418 NM --------- --------- ---------- ---------- Total cost of sales 460,753 347,646 113,107 32.5 --------- --------- ---------- ---------- Gross profit 94,838 77,202 17,636 22.8 Asset impairment charges 550 153 397 259.5 SG&A expense 77,292 67,507 9,785 14.5 Depreciation and amortization 4,188 6,316 (2,128) (33.7) --------- --------- ---------- ---------- Income from operations 12,808 3,226 9,582 297.0 Floorplan interest expense (2,194) (2,387) (193) (8.1) Other interest expense (3,730) (3,476) 254 7.3 Other income, net 66 48 18 37.5 --------- --------- ---------- ---------- Income (loss) from continuing operations before income taxes 6,950 (2,589) 9,539 NM Income tax expense (benefit) 2,571 (775) 3,346 NM Income tax rate 37.0% 29.9% --------- --------- ---------- ---------- Income (loss) from continuing operations $ 4,379 $ (1,814) $ 6,193 NM% Income from discontinued operations, net of income tax - 260 (260) 100.0 --------- --------- ---------- ---------- Net income (loss) $ 4,379 $ (1,554) $ 5,933 NM% ========= ========= ========== ========== Diluted net income (loss) per share: Continuing operations $ 0.16 $ (0.07) $ 0.23 NM% Discontinued operations - 0.01 (0.01) NM --------- --------- ---------- ---------- Net income per share $ 0.16 $ (0.06) $ 0.22 NM% ========= ========= ========== ========== Diluted shares outstanding 26,540 25,113 1,427 5.7% Lithia Motors, Inc. Key Performance Metrics (Unaudited) Three Months Ended December 31, % -------------------- Increase Increase 2010 2009 (Decrease) (Decrease) --------- --------- ---------- ---------- Gross margin New vehicle retail 7.8% 7.9% (10) bps Used vehicle retail 13.5 13.8 (30) bps Used vehicle wholesale (0.2) - (20) bps Finance & insurance 100.0 100.0 - bps Service, body & parts 46.1 45.8 30 bps Gross profit margin 17.1 18.2 (110) bps Unit sales New vehicle retail 8,907 6,537 2,370 36.3% Used vehicle retail 8,386 6,574 1,812 27.6 Used vehicle wholesale 3,708 3,166 542 17.1 Total units sold 21,001 16,277 4,724 29.0 Average selling price New vehicle retail $ 32,567 $ 32,200 $ 367 1.1% Used vehicle retail 16,653 17,044 (391) (2.3) Used vehicle wholesale 7,608 5,753 1,855 32.3 Average gross profit per unit New vehicle retail $ 2,545 $ 2,528 $ 17 0.7% Used vehicle retail 2,253 2,347 (94) (4.0) Used vehicle wholesale (16) (2) (14) 700.0 Finance & insurance 999 938 61 6.5 Revenue mix New vehicle retail 52.2% 49.5% Used vehicle retail 25.1 26.4 Used vehicle wholesale 5.1 4.3 Finance & insurance, net 3.1 2.9 Service, body & parts 13.9 16.8 Fleet and other 0.6 0.1 Adjusted As reported -------------------- ---------------------- Three Months Ended Three Months Ended December 31, December 31, -------------------- ---------------------- Other metrics 2010 2009 2010 2009 --------- --------- ---------- ---------- SG&A as a % of revenue 13.9% 15.8% 13.9% 15.9% SG&A as a % of gross profit 80.8 85.3 81.5 87.4 Operating profit as a % of revenue 2.6 1.1 2.3 0.8 Operating profit as a % of gross profit 14.9 6.1 13.5 4.2 Pretax margin 1.5 (0.2) 1.3 (0.6) Lithia Motors, Inc. Same Store Operating Highlights (Unaudited) (In thousands except per unit data) Three Months Ended December 31, -------------------- % Increase Increase 2010 2009 (Decrease) (Decrease) --------- --------- ---------- --------- Revenues New vehicle retail $ 283,707 $ 211,022 $ 72,685 34.4% Used vehicle retail 135,834 112,203 23,631 21.1 Used vehicle wholesale 27,481 18,146 9,335 51.4 Finance and insurance 15,962 11,908 4,054 34.0 Service, body and parts 75,098 71,272 3,826 5.4 Gross profit New vehicle retail 21,771 16,622 5,149 31.0 Used vehicle retail 18,507 15,357 3,150 20.5 Used vehicle wholesale (46) (2) (44) NM Finance and insurance 15,962 11,908 4,054 34.0 Service, body and parts 34,996 33,328 1,668 5.0 Unit sales New vehicle retail 8,699 6,554 2,145 32.7% Used vehicle retail 8,152 6,583 1,569 23.8 Used vehicle wholesale 3,597 3,160 437 13.8 Total units sold 20,448 16,297 4,151 25.5 Average selling price New vehicle retail $ 32,614 $ 32,197 $ 417 1.3% Used vehicle retail 16,663 17,044 (381) (2.2) Used vehicle wholesale 7,640 5,742 1,898 33.0 Average gross profit per unit New vehicle retail $ 2,503 $ 2,536 $ (33) (1.3)% Used vehicle retail 2,270 2,333 (63) (2.7) Used vehicle wholesale (13) (1) (12) NM Finance & insurance 947 906 41 4.5 Lithia Motors, Inc. Consolidated Statement of Operations (Unaudited) (In thousands except per share data) Twelve Months Ended December 31, % ------------------------ Increase Increase 2010 2009 (Decrease) (Decrease) ----------- ----------- ----------- ----------- Revenues: New vehicle retail $ 1,067,648 $ 881,329 $ 186,319 21.1% Used vehicle retail 581,185 477,253 103,932 21.8 Used vehicle wholesale 108,113 72,699 35,414 48.7 Finance and insurance 67,107 56,397 10,710 19.0 Service, body and parts 295,823 291,075 4,748 1.6 Fleet and other 11,722 2,614 9,108 NM ----------- ----------- ----------- ----------- Total revenues 2,131,598 1,781,367 350,231 19.7 Cost of sales: New vehicle retail 980,264 806,912 173,352 21.5 Used vehicle retail 499,182 410,087 89,095 21.7 Used vehicle wholesale 107,468 72,288 35,180 48.7 Service, body and parts 153,239 152,532 707 0.5 Fleet and other 10,015 1,283 8,732 NM ----------- ----------- ----------- ----------- Total cost of sales 1,750,168 1,443,102 307,066 21.3 ----------- ----------- ----------- ----------- Gross profit 381,430 338,265 43,165 12.8 Asset impairment charges 15,301 8,272 7,029 85.0 SG&A expense 300,612 276,021 24,591 8.9 Depreciation and amortization 17,577 18,259 (682) (3.7) ----------- ----------- ----------- ----------- Income from operations 47,940 35,713 12,227 34.2 Floorplan interest expense (10,597) (11,015) (418) (3.8) Other interest expense (14,572) (14,115) 457 3.2 Other income, net 422 1,495 (1,073) (71.8) ----------- ----------- ----------- ----------- Income from continuing operations before income taxes 23,193 12,078 11,115 92.0 Income tax expense 9,093 5,162 3,931 76.2 Income tax rate 39.2% 42.7% ----------- ----------- ----------- ----------- Income from continuing operations $ 14,100 $ 6,916 $ 7,184 103.9% Income (loss) from discontinued operations, net of income tax (381) 2,235 (2,616) NM ----------- ----------- ----------- ----------- Net income $ 13,719 $ 9,151 $ 4,568 49.9% =========== =========== =========== =========== Diluted net income (loss) per share: Continuing operations $ 0.53 $ 0.31 $ 0.22 71.0% Discontinued operations (0.01) 0.10 (0.11) NM =========== =========== =========== =========== Net income per share $ 0.52 $ 0.41 $ 0.11 26.8% =========== =========== =========== =========== Diluted shares outstanding 26,279 22,176 4,103 18.5% NM - not meaningful Lithia Motors, Inc. Key Performance Metrics (Unaudited) Twelve Months Ended December 31, % -------------------- Increase Increase 2010 2009 (Decrease) (Decrease) --------- --------- ----------- ---------- Gross margin New vehicle retail 8.2% 8.4% (20) bps Used vehicle retail 14.1 14.1 - bps Used vehicle wholesale 0.6 0.6 - bps Finance & insurance 100.0 100.0 - bps Service, body & parts 48.2 47.6 60 bps Gross profit margin 17.9 19.0 (110) bps Unit sales New vehicle retail 33,701 29,316 4,385 15.0% Used vehicle retail 34,969 29,453 5,516 18.7 Used vehicle wholesale 14,365 13,623 742 5.4 Total units sold 83,035 72,392 10,643 14.7 Average selling price New vehicle retail $ 31,680 $ 30,063 $ 1,617 5.4% Used vehicle retail 16,620 16,204 416 2.6 Used vehicle wholesale 7,526 5,337 2,189 41.0 Average gross profit per unit New vehicle retail $ 2,593 $ 2,538 $ 55 2.2% Used vehicle retail 2,345 2,280 65 2.9 Used vehicle wholesale 45 30 15 50.0 Finance & insurance 977 960 17 1.8 Revenue mix New vehicle retail 50.1% 49.5% Used vehicle retail 27.3 26.8 Used vehicle wholesale 5.1 4.1 Finance & insurance, net 3.1 3.2 Service, body & parts 13.9 16.3 Fleet and other 0.5 0.1 Adjusted As reported -------------------- ---------------------- Twelve Months Ended Twelve Months Ended December 31, December 31, -------------------- ---------------------- Other metrics 2010 2009 2010 2009 --------- --------- ---------- ---------- SG&A as a % of revenue 14.1% 15.5% 14.1% 15.5% SG&A as a % of gross profit 78.4 81.1 78.8 81.6 Operating profit as a % of revenue 3.1 2.5 2.2 2.0 Operating profit as a % of gross profit 17.0 13.4 12.6 10.6 Pretax margin 1.9 1.1 1.1 0.7 Lithia Motors, Inc. Same Store Operating Highlights (Unaudited) (In thousands except per unit data) Twelve Months Ended December 31, ----------------------- % 2010 2009 Increase Increase ----------- ----------- ----------- ---------- Revenues New vehicle retail $ 1,053,411 $ 881,290 $ 172,121 19.5% Used vehicle retail 568,532 476,395 92,137 19.3 Used vehicle wholesale 105,701 71,936 33,765 46.9 Finance and insurance 63,096 53,843 9,253 17.2 Service, body and parts 291,549 290,384 1,165 0.4 Gross profit New vehicle retail 85,642 74,533 11,109 14.9% Used vehicle retail 80,118 65,565 14,553 22.2 Used vehicle wholesale 808 633 175 27.6 Finance and insurance 63,096 53,843 9,253 17.2 Service, body and parts 138,694 136,883 1,811 1.3 Unit sales New vehicle retail 33,173 29,302 3,871 13.2% Used vehicle retail 34,173 29,386 4,787 16.3 Used vehicle wholesale 14,043 13,562 481 3.5 Total units sold 81,389 72,250 9,139 12.6 Average selling price New vehicle retail $ 31,755 $ 30,076 $ 1,679 5.6% Used vehicle retail 16,637 16,212 425 2.6 Used vehicle wholesale 7,527 5,304 2,223 41.9 Average gross profit per unit New vehicle retail $ 2,582 $ 2,544 $ 38 1.5% Used vehicle retail 2,344 2,231 113 5.1 Used vehicle wholesale 58 47 11 23.2 Finance & insurance 937 917 20 2.1 Lithia Motors, Inc. Revenue Mix (Unaudited) Three months ended Twelve months ended December 31, December 31, ------------------ ------------------ 2010 2009 2010 2009 -------- -------- -------- -------- New vehicle unit sales brand mix Chrysler 29.2% 23.0% 28.4% 29.1% General Motors 15.1 17.9 16.1 16.5 Toyota 13.8 16.5 13.5 15.1 Honda 8.7 9.5 8.6 8.8 Ford 5.8 5.8 5.8 5.0 Hyundai 5.1 3.8 5.7 5.0 Subaru 6.0 7.4 5.6 5.6 BMW 5.8 6.2 5.4 5.1 Volkswagen, Audi 3.5 3.4 3.6 3.2 Nissan 3.0 3.7 3.4 3.9 Kia 2.0 0.7 2.0 0.6 Mercedes 1.4 1.3 1.2 1.1 Other 0.6 0.8 0.7 1.0 Three months ended Twelve months ended December 31, December 31, ------------------ ------------------ 2010 2009 2010 2009 -------- -------- -------- -------- Revenue geographic mix Texas 23.9% 24.5% 24.5% 23.9% Oregon 15.6 15.5 15.0 16.4 California 10.9 11.6 11.2 11.6 Washington 10.2 10.7 10.1 10.0 Alaska 9.0 9.7 10.0 9.9 Montana 8.5 6.1 7.6 6.8 Iowa 7.3 7.7 7.1 7.2 Idaho 5.8 6.3 6.2 6.4 Nevada 4.4 4.1 4.2 4.0 North Dakota 2.4 2.1 2.2 1.9 New Mexico 1.1 0.9 1.0 1.1 Colorado 0.9 0.8 0.9 0.8 As of December 31, 2010 ------------------- # of % of Current store count mix stores total --------- -------- Chrysler 23 27.4% General Motors 12 14.3 Toyota 8 9.5 Honda 8 9.5 Hyundai 6 7.1 BMW 6 7.1 Ford 4 4.8 Volkswagen, Audi 4 4.8 Nissan 4 4.8 Other 4 4.8 Subaru 2 2.4 Kia 2 2.4 Mercedes 1 1.1 Lithia Motors, Inc. Consolidated Balance Sheet (Unaudited) (In thousands except per share data) December 31, December 31, 2010 2009 ------------ ------------ Cash and cash equivalents $ 9,306 $ 12,776 Trade receivables, net 75,011 52,097 Inventories, net 415,228 333,628 Other current assets 6,062 7,869 Deferred income taxes 2,937 - Assets held for sale - 11,693 ------------ ------------ Total current assets $ 508,544 $ 418,063 Property and equipment, net 362,433 386,054 Goodwill 6,186 - Franchise value 45,193 42,428 Other non-current assets 9,796 7,820 Deferred income taxes 39,524 40,735 ------------ ------------ Total assets $ 971,676 $ 895,100 ============ ============ Floorplan notes payable 251,257 216,082 Current maturities of long-term debt 12,081 32,708 Trade payables 23,747 18,782 Accrued liabilities 58,784 47,519 Deferred income taxes - 1,036 Liabilities related to assets held for sale - 5,050 ------------ ------------ Total current liabilities $ 345,869 $ 321,177 Long-term debt 268,693 233,065 Deferred revenue 20,158 17,981 Other long-term liabilities 16,739 15,839 ------------ ------------ Total liabilities $ 651,459 $ 588,062 ============ ============ Class A common stock 284,807 280,880 Class B common stock 468 468 Additional paid-in capital 10,972 10,501 Other comprehensive income (4,869) (3,850) Retained earnings 28,839 19,039 ------------ ------------ Total liabilities & shareholders' equity $ 971,676 $ 895,100 ============ ============ Lithia Motors, Inc. Summarized Cash Flow from Operations (Unaudited) (In thousands) Twelve Months Ended December 31, -------------------------- 2010 2009 ------------ ------------ Net income $ 13,719 $ 9,151 Adjustments to reconcile net income to cash provided by (used in) operating activities: Asset impairments 15,301 8,272 Depreciation and amortization 17,586 18,821 Amortization of debt discount - 48 Stock-based compensation 2,419 2,054 Gain on early extinguishment of debt - (1,317) (Gain) loss on disposal of assets 194 (10,686) Deferred income taxes (2,131) 5,627 Excess tax deficit (benefit) from share-based payment arrangements (264) 45 (Increase) decrease, net of effect of acquisitions and divestitures Trade receivables, net (22,881) 17,780 Inventories (68,305) 120,785 Other current assets (1,633) 15,992 Other non-current assets (2,029) (4,347) Increase (decrease), net of effect of acquisitions and divestitures Floorplan notes payable 10,550 (179,893) Trade payables 4,960 (2,789) Accrued liabilities 10,029 (4,318) Other long-term liabilities and deferred revenue 1,155 14,714 ------------ ------------ Net cash provided by (used in) operating activities $ (21,330) $ 9,939 Lithia Motors, Inc. Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited) (In thousands) Twelve Months Ended December 31, -------------------------- Net cash provided by (used in) operating activities 2010 2009 ------------ ------------- As reported $ (21,330) $ 9,939 Floorplan notes payable, non-trade 24,090 31,417 ------------ ------------- Adjusted $ 2,760 $ 41,356 Lithia Motors, Inc. Other Highlights (Unaudited) (In thousands except per share data) December 31, December 31, 2010 2009 ----------- ----------- Other information Long-term debt/total capitalization(1) 45.6% 43.2% (1) Total capitalization is comprised of long-term debt and total shareholder's equity. Debt covenant ratios As of Requirement December 31, 2010 ---------------------------- -------------------- Minimum tangible net worth Not less than $200 million $267.1 million Vehicle equity Not less than $65 million $187.7 million Fixed charge coverage ratio Not less than 1.20 to 1 1.68 to 1 Liabilities to tangible net worth ratio Not more than 4.00 to 1 2.44 to 1 Lithia Motors, Inc. Reconciliation of Certain Non-GAAP Financial Measures (Unaudited) (In thousands) Three months ended Twelve months ended December 31, December 31, --------------------- -------------------- 2010 2009 2010 2009 ---------- --------- --------- --------- Selling, general & administrative As reported $ 77,292 $ 67,507 $ 300,612 $ 276,021 Impairments and disposal gain 48 - 413 - Reserve adjustments 96 (454) (1,238) (454) ---------- --------- --------- --------- Adjusted $ 77,436 $ 67,053 $ 299,787 $ 275,567 Income from operations As reported $ 12,808 $ 3,226 $ 47,940 $ 35,713 Impairments and disposal gain 502 (277) 14,954 7,842 Reserve adjustments 944 1,854 2,278 1,854 ---------- --------- --------- --------- Adjusted $ 14,254 $ 4,803 $ 65,172 $ 45,409 Income (loss) from continuing operations before income taxes As reported $ 6,950 $ (2,589) $ 23,193 $ 12,078 Impairments and disposal gain 502 (277) 14,954 7,842 Reserve adjustments 944 1,854 2,278 1,854 Gain on extinguishment of debt - - - (1,317) ---------- --------- --------- --------- Adjusted $ 8,396 $ (1,012) $ 40,425 $ 20,457 Lithia Motors, Inc. Reconciliation of Certain Non-GAAP Financial Measures (Unaudited) (In thousands except per share data) Adjusted net income/(loss) and diluted earnings per share Three Months Ended December 31, Diluted earnings Net income/(loss) per share -------------------- -------------------- 2010 2009 2010 2009 --------- --------- --------- --------- Continuing Operations As reported $ 4,379 $ (1,814) $ 0.16 $ (0.07) Impairments and disposal gain 401 (34) 0.02 - Reserve adjustments 807 1,103 0.03 0.04 --------- --------- --------- --------- Adjusted $ 5,587 $ (745) $ 0.21 $ (0.03) Discontinued Operations As reported $ - $ 260 $ - $ 0.01 Impairments and disposal (gain) loss - (1,474) - (0.06) --------- --------- --------- --------- Adjusted $ - $ (1,214) $ - $ (0.05) Consolidated Operations As reported $ 4,379 $ (1,554) $ 0.16 $ (0.06) Adjusted 5,587 (1,959) 0.21 (0.08) Twelve Months Ended December 31, Diluted earnings Net income/(loss) per share -------------------- -------------------- 2010 2009 2010 2009 --------- --------- --------- --------- Continuing Operations As reported $ 14,100 $ 6,916 $ 0.53 $ 0.31 Impairments and disposal gain 9,178 4,967 0.35 0.22 Reserve adjustment 1,532 1,103 0.06 0.06 Gain on extinguishment of debt - (812) - (0.04) --------- --------- --------- --------- Adjusted $ 24,810 $ 12,174 $ 0.94 $ 0.55 Discontinued Operations As reported $ (381) $ 2,235 $ (0.01) $ 0.10 Impairments and disposal (gain) loss 173 (6,589) - (0.30) --------- --------- --------- --------- Adjusted $ (208) $ (4,354) $ (0.01) $ (0.20) Consolidated Operations As reported $ 13,719 $ 9,151 $ 0.52 $ 0.41 Adjusted 24,602 7,820 0.93 0.35
Contact:
John North
541-618-5748
jnorth@lithia.com
